British energy giant, BP plc (BP – Analyst Report) reported second-quarter 2015 adjusted earnings of 43 cents per American Depositary Share (ADS) on a replacement cost basis, excluding non-operating items. The bottom line came below the Zacks Consensus Estimate of 55 cents and saw a drastic decline from the year-ago earnings of $1.18.
BP's total revenue was $61,800 million in the quarter, down from the year-ago level of $95,827 million.
Operational Performance
Upstream
Total production of 2.112 million barrels of oil equivalent per day (MMBoe/d) was up 0.3% year over year.
The company sold liquids for $56.69 per barrel in the second quarter (versus $96.90 in the year-earlier quarter) and natural gas for $3.80 per thousand cubic feet (versus $5.67). Overall price realization fell to $40.04 per Boe from the year-ago level of $64.90 per Boe.
After adjusting for non-operating items and fair value accounting effects, the underlying replacement cost profit before interest and tax for the Upstream segment in the second quarter was $494 million compared with $4,655 million for the comparable quarter in 2014.
The results for the reported quarter reflected significantly lower liquids and gas realizations, and higher exploration write-offs. This was partly offset by lower costs including the benefits from simplification and efficiency activities.
Downstream
Segmental profit rose to $1,867 million from $733 million in the year-ago quarter. The improvement came on the back of a stronger refining environment as well as higher contribution from supply and trading activities.
Refining Marker Margin increased to $19.4 per barrel from $15.4 in the second quarter of 2014. Total refinery throughput increased slightly to 1,656 thousand barrels per day (MB/d) from 1,652 MB/d in the year-earlier period. Refining availability was 94.0% versus 95.3% in the year-ago period.
Rosneft
The Rosneft segment includes equity-accounted earnings from associates, representing BP's stake in the former. The segment posted profits of $510.0 million in the reported quarter.
